Dallas, TX, August 15, 2012 --(PR.com
)-- Cash or credit? Soon consumers may replace both with their favorite mobile device according to a recent survey from Dallas-based SWACHA, one of the largest not-for-profit electronic payments associations in the country. According to SWACHA’s Consumer Insights Survey mobile banking usage has tripled with 20 percent of those surveyed currently banking on their phones compared to 7 percent in 2009.
As more consumers use their mobile devices to make purchases the use of cash is in sharp decline according to the survey with consumers reporting they can go an average of 95 days without making a cash purchase compared to 53 days in 2009.
“Mobile payments are the next frontier for our industry and we expect the service to spread quickly over the next few years,” said Dennis Simmons, AAP, president and CEO of SWACHA. “People are widely using their phones to check their account balance and transfer money, and as financial institutions, mobile devices and retailers adopt the technology we expect most people to swipe their phone at the register of their favorite stores as well.”
SWACHA’s survey revealed people currently use mobile devices for banking in a variety of ways. 94 percent of respondents reported checking account balances, 59 percent transfer money between accounts, 36 percent pay bills and 18 percent make purchases.
Despite mobile banking’s increasing popularity, financial institutions must address concerns about the security of transactions made on a mobile device. According SWACHA’s survey, 52 percent of those surveyed cited security concerns as the primary reason they do not use mobile banking.
“It is our responsibility as an electronic payments resource to keep financial institutions informed on security for mobile transactions and help raise awareness on mobile security as more people bank on the go,” said Simmons. “We believe mobile banking will be the personal finance tool of the future, and we look forward to watching how people will make payments in the coming years.”
About the Survey
SWACHA's online survey of 600 Texas residents was conducted in August 2011 by Decision Analyst with a confidence interval of 95 percent and a corresponding margin of error of +/- 4 percent. Only those respondents who identified themselves as the person responsible for paying household bills were permitted to complete the survey.
SWACHA-The Electronic Payments Resource®, is one of the largest not-for-profit regional payments associations in the country with approximately 1,100 members across the Southwest. SWACHA is the resource of choice for financial institutions and corporations in the areas of education, training, payments system risks and knowledge about electronic payments. For more information visit:
Editor’s Note: This is a part of a series of releases based on SWACHA’s 2011 Consumer Insights Survey.